Shareholders at Abu Dhabi Islamic Bank (Adib) have approved the issuance of an extra $1bn sukuk (Islamic bond) and 168 million shares.

The sukuk will follow on from $2bn of tier-1 non-convertible sharia-compliant instruments issued by Adib since 2012.

They are the first ever sharia-compliant hybrid tier-1 bonds and the first perpetual tier-1 instrument to be publically issued in the region.

The issuance, when it is approved by regulators, will strengthen Adib’s capital adequacy ratio, which was at 18.2 per cent in March this year.

This will support the bank’s growth plans, as it expands its international network.

The bank has an A+ rating from the US’ Fitch Ratings, and an A2 rating from US-based Moody’s Investors Service, both stable.

Existing shareholders will have priority in distributing the new shares, which will be valued at AED1 ($0.27) each.

Adib is 40 per cent owned by Emirates International Investment Company, which is wholly owned by members of the Abu Dhabi royal family. The remainder of its 3 billion shares are owned by UAE nationals and companies.